FYI for others, I have just had a Skype conversation with Barrie, he could see me

but I couldn't see him

We went through the video setup and it all appears ok.
Barrie, I have just tried calling myself on my ipad from my husbands' laptop and when "he" calls me, the little video window is initially blank, I then reselected the webcam from the drop down menu and the video started streaming properly. there is only one which is internal to the laptop. You may want to try that.
Don't know if the latest version of Skype has the same layout though.
Jenny